How to clear a car from a Nigerian port
It might be difficult to clear vehicles through Nigerian ports. When clearing your car from a Nigerian port, there are several things to watch out for, such as unauthorized charges and long processing waits. Even though the country imports hundreds of thousands of vehicles each year, this billion-dollar business is not necessarily the simplest. You will need to be prepared to deal with various problems, including the inefficiency of the system and the harshness of some officials.
For these reasons, it is advisable to be aware of the procedures, costs and expectations when clearing a car through Nigeria port.
1. Obtain the bill of lading
The bill of lading is a document that your foreign shipping agent will send you. The shipping company or freight carrier will issue the document in the form of a receipt certifying that the desired vehicle is on board their vessel. The bill of lading contains all the details of the vehicle, such as the vehicle name, make and model, weight, VIN, year of manufacture, etc.
This document can be sent to you via courier services such as DHL and FedEx, or by email, if you wish to do ‘Print at Destination’, which will print a copy of the invoice here in Nigeria.
2. Request an import duty assessment.
You will need to request an import duty assessment from reputable clearing companies. This is one of the most dangerous aspects of the clearing process because the clearing agency can determine whether the next steps will be easy or difficult. Choose a company that is registered and authorized to provide clearing services to clients.
The clearing agency will submit an application on their company letterhead with a copy of the bill of lading attached. This will be sent to the Nigeria Customs Service. In response to the application letter, the monetary value of the car will be determined. This makes it possible to calculate the surface duty, which is 35% for used vehicles and 70% for new vehicles. Please note that this rate does not include taxes, terminal fees or shipping charges.
3.Enter the valuation in the custom server
The details need to be entered into the custom server once the valuation is obtained from the custom order. This is called “Direct Trader Input” (DTI), or more colloquially, “punching”.
This action can only be performed through the same registered agency that used the letterhead for the vehicle valuation. At this point, the recipient’s tax identification number will be requested.
Print the DTI or Notice of Assessment and the completed Single Goods Declaration (SGD) form. The SGD describes the transaction as well as the vehicle type and the contents of the vehicle.
4. Pay import duties
Check the bank specified when hallmarking to pay import duties. You must bring the tax notice with you as the bank will require it for payment of import duties. The bank will issue a bank receipt once payment is made. You can also make payment online, but you need to collect proof of payment from the bank.
5. Physical inspection and customs clearance
Bring all your documents to the customs office. The bank receipt, SGB, valuation notice, valuation copy and bill of lading must all be included in the submission. Once the documents are provided, they are recorded and a date for the physical examination of the vehicle is set.
This allows customs to confirm that the information in the documents matches the vehicle description. They will confirm the make, year and VIN/chassis of the vehicle. They will also verify and validate the amount of duty paid. They will then submit a report to the release office.
6. Shipping Company Print Output
Once released, hand the SGD to the shipping company so they can print the release copy.
7. Shipping in the maritime transport sector
For the car to be released, you must provide all your documents. This includes the original signed bill of lading, an exit copy, the SGD and a signed copy of the recipient’s identification (e.g. international passport, driver’s license or national ID card).
You may need to provide special documents that allow clearing agencies to operate, often called Form C30. This, coupled with a letter of authority from the agency whose information was used to file a value request, must be submitted. These documents will be reviewed and you will be required to pay shipping and terminal fees.
8. Customer Service Portal is another one simple step
Register and log in at the door. You must provide the unique exit documents as well as the exit copy from the shipping company. They will inspect and verify that the duties have been paid before stamping and signing the documents.
9. Collect the TDO (Terminal Delivery Order)
To collect the TDO, you must present the payment receipt from the shipping company as well as a copy of the signed ate document.
10. The vehicle will be delivered to the ground floor
Documentation can be provided for the car to be brought to the open floor and allowed through the final gate.
Final Thoughts
The procedure takes time and can significantly increase the cost of purchasing an automobile. You may want to consider purchasing directly from car dealerships rather than importing one yourself.
